Microeconomic Decision-making in an Islamic Framework

  • Masudul Alam Choudhury

Abstract

Two major methodological approaches can be discerned in the literature on economic decision-making.1 One approach has devoted itself to the development of economic decision-making studies based on cost-benefit techniques,2 capital budgeting3 and valuation of industrial projects,4 especially as the associated problems with this approach emanates from the firm’s balance-sheet and the income statement.5

Keywords

Income Assimilation 

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Notes and References

  1. 4.
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    The usual types of stochastic processes covered are Markov processes. See K. Borch, ‘Decision Rules depending on the Probability of Ruin’, Oxford Economic Papers (Mar 1968); F. Hanssman, ‘Probability of Survival as an Investment Criterion’, Management Science (Sep 1968); J. Steindl, Random Processes and the Growth of Firms (New York: Hafner Publishing Co., 1965) chaps iv and v.Google Scholar
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    Note that due to the predominance of investment activity and of consumer durables, the idea of human capital can be treated in an Islamic framework more from an investment approach. See H. G. Johnson, ‘Towards a Generalized Capital Accumulation Approach to Economic Development’, Residual Factor and Economic Growth, (Paris: OECD 1964).Google Scholar
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Copyright information

© Masudul Alam Choudhury 1986

Authors and Affiliations

  • Masudul Alam Choudhury
    • 1
  1. 1.University College of Cape BretonNova ScotiaCanada

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